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Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
Edition 11ISBN: 978-1259535314 Exercise 15
Understanding and analyzing financial statement relationships-sales/service organization Pope's Garage had the following accounts and amounts in its financial statements on December 31, 2016. Assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year then ended.
Required:
a. Calculate the total current assets at December 31, 2016.
b. Calculate the total liabilities and stockholders' equity at December 31, 2016.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.
d. Calculate the net income (or loss) for the year ended December 31, 2016.
e. What was the average income tax rate for Pope's Garage for 2016?
f. If $48,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?
Required:
a. Calculate the total current assets at December 31, 2016.
b. Calculate the total liabilities and stockholders' equity at December 31, 2016.
c. Calculate the earnings from operations (operating income) for the year ended December 31, 2016.
d. Calculate the net income (or loss) for the year ended December 31, 2016.
e. What was the average income tax rate for Pope's Garage for 2016?
f. If $48,000 of dividends had been declared and paid during the year, what was the January 1, 2016, balance of retained earnings?
Explanation
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(a) Determine the total current assets a...
Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall
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